What losses does the Client Protection Fund cover?
The Board of Commissioners may reimburse losses caused by the dishonest conduct of lawyers admitted to the practice of law in Michigan, up to a maximum of $50,000 for each client loss; however, the aggregate maximum amount for which the Fund will reimburse losses resulting from an individual lawyer is $200,000. “Dishonest conduct” means the wrongful taking of clients’ money or other property, in the course of an attorney-client relationship. Clients must have reported the dishonest conduct to either the Attorney Grievance Commission, or a law enforcement authority, filed a claim in any court or tribunal having jurisdiction within two years after the dishonest act, or, if the dishonest act could not then have reasonably been discovered, within six months after the claimant did or reasonably should have discovered the dishonest conduct. Typical losses covered include the theft of money from estates of dead clients; escrow funds in real property closing; settlements in personal injury act
